Flagler County faces budget 'challenges' not 'crisis'

Wednesday

The county doesn't have the financial strength to go along as it has the past five years using its unrestricted reserves to keep property taxes artificially low.

BUNNELL — Flagler County is facing financial challenges but nothing that Administrator Craig Coffey feels cannot be overcome. "We are not in dire straits. We are not in crisis mode, but we do have some challenges," Coffey told commissioners on Wednesday during the first budget workshop. "There is a cost to provide services properly, and in some areas we are kind of falling down." The current tax rate is $7.08 per $1,000 of taxable property value and provides about 67 percent of the county's general fund. At this rate, the owner of a home valued at $125,000 with a $50,000 homestead exemption pays $531 annually. Revenues for the county dropped from a high of $48 million in 2007 to $41.3 million for the 2013 fiscal year, according to the materials Coffey presented to the County Commission. For the 2014 fiscal year, he would like to see those revenues between the level they were in 2008 and 2009, which translates to $45.7 million to $47.3 million. Using the example of holding heavy barbells for a lengthy period of time, Coffey said the county doesn't have the financial strength to go along as it has for the past five years by using its unrestricted reserves to keep property taxes artificially low. Property Appraiser Jay Gardner said in an interview Monday that property values, for the first time in years, are holding steady. Though Coffey didn't say it directly, property tax rates will have to increase for the county's revenues to increase. "We are getting to the point where we have to sustain ourselves," he said. The administrator referred to his staff as "super troopers," given that the number of employees has gone from 350 to 300 and no raises have been issued in a number of years. The current costs of personnel services are now $4.8 million less per year than in 2007. Coffey said12 employees need to be added back for the county to operate at a "sustainable level." Though he said he would not fill all 12 positions in the coming fiscal year, he penciled in $425,000 to cover the cost. The greatest need, he said, is in engineering, maintenance and legal. Coffey also included $750,000 in "cost of living" adjustments and noted that more than 80 percent of county employees make less than $50,000 per year. A quarter million is needed to cover "miscellaneous" things like how to support the Flagler County Free Clinic and keep library doors open for more hours. "Are we looking for ways to save money? CRAs (Community Redevelopment Agency) cost a lot of money," said Commissioner George Hanns. "Areas like Town Center are not filling up as fast as what we had hoped. And, we pay an extraordinary amount of money for stormwater fees just for the library (to Palm Coast)." Coffey said the county loses about $1 million to the CRAs, and pays about $6,000 annually for stormwater fees for the 19 acres of mostly vacant land on which the library sits. "Palm Coast treats Flagler County liked we're divorced and being charged alimony," Hanns said. Coffey said talks are under way with the city to reassess what the county pays in stormwater fees. Commissioner Charlie Ericksen recommended the fire chiefs from the cities and county get together to determine if there isn't a more cost-effective way to operate fire protection across the county.Commissioner Barbara Revels would like to see discussions on the big-ticket items, but wasn't interested in meeting with elected officials like the sheriff or supervisor of elections unless there is a large budget increase request. Commissioner Frank Meeker asked Coffey for a list of what the county is required to provide its citizens. "There are a ton of things that you don't 'have' to do," Coffey said. "It's much easier for me to ask what you don't want to do anymore than to justify everything that we do want to do." Commission Chairman Nate McLaughlin said he isn't interested in severely cutting services.

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